4 Hot Analyst Reads For Thursday, June 14th

The following is a synopsis of recent analyst activity that could buoy these small cap biotech stocks in trading

Here is the difference between Dante, Milton, and me. They wrote about hell and never saw the place. I wrote about Chicago after looking the town over for years and years.” ― Carl Sandburg

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Here are four small cap biotech stocks garnering positive analyst commentary recently just before the market open today

Small cap Denver based medical device concern Viveve Medical (VIVE) is starting to get some attention from the analyst community over the past two weeks, after analyst were dormant on this name for some three months. Last week, both Maxim Group ($9 price target) and Northland Securities ($8 price target) reiterated Buy ratings on the firm. Today, we have Mizuho Securities reissuing its Buy rating and less optimistic $4 price target. Here is what Maxim had to say about recent developments at the firm

“We believe VIVE has completed enrollment of the first 25 patients in its VIVEVE II study. The company expects to submit the 30-day safety data to the FDA by the end of June 2018. Market open, VIVE announced it reached a settlement of its patent infringement lawsuit against ThermiGen, LLC (Thermi), under which VIVE will receive both a monetary payment and royalties from Thermi.”

BMO Capital is sticking with scPharmaceuticals (SCPH) after that company received a complete response letter or CRL from the FDA yesterday around its application for its FUROSCIX Infusor product candidate for the treatment of fluid overload (edema) in heart failure patients. The CRL cited the need for additional human factor studies, device modifications and, potentially, a new clinical study. BMO Capital is lowering its price target to $14 from $24 previously but maintains an Outperform rating on the stock. It states the CRL was disappointing but 'expected'. It projects FUROSCIX will eventually find a way forward towards approval but with a one or two year delay now.

Source: Company Presentation

Cantor Fitzgerald is still optimistic on Global Blood Therapeutics (GBT) and it reiterated a Buy rating and $69 price target on the stock late yesterday with the following color

“Based on the existing clinical data, we believe voxelotor offers a compelling treatment option in SCD that lacks disease-modifying therapies. $69 price target is based on the combination of our estimate of the NPV of future cash flows from voxelotor in SCD, worth approximately $3.3 billion ($61/ share), and our estimate of YE18 cash of $400 million ($8/share).”

The company has an important presentation over in Europe tomorrow, something we drew attention to Sunday in our 'Biotech: The Week Ahead' synopsis.

Finally, H.C. Wainwright reissued its Buy rating and $10 price target on Anavex Life Sciences (AVXL) this morning with the following commentary

"We remain hopeful as the need in AD is great. Sigma 1 appears to be a cell survival mechanism. ANAVEX2-73 (2-73), as an agonist of the Sigma 1 receptor is being evaluated by Anavex for its utility in AD. As a cell survival mechanism it appears that once activated there are several modes of action including muscarinic, as a sigma receptor agonist, and Ca2+ modulation. The combination of which appears to reduce mitochondrial dysfunction, lower oxidative stress and as a chaperone for the elimination of early misfolded proteins, which in turn should prevent the formation of beta-amyloid and tau, all of which suggests potential utility in a wide range of CNS disorders. The mechanism of action is very differentiated from the recent failures such as the BACE inhibitors and others we have seen in the AD space. Signals of hope in AD.”

Given the high profile failures in the Alzheimer's development area in recent weeks, we are currently avoiding the entire space. Unfortunately, this dreaded disease has become the 'black hole' for development in the industry. Tens of billions of dollars have been spent with little results to show for the efforts. The industry is still not even sure what even causes the affliction yet.​ Given history, Anavex probably has better odds for the other indications it is aiming at (above).

And those are four small cap biotech concerns that could be boosted by recent analyst action in trading today.

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wbizzare
wbizzare

Anavex CEO making 2.6M in salary and their cash on hand is 28M. That just does not compute!



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